CS/CS/HB 1283

1	A bill to be entitled
2	An act relating to black business investment; amending s.
3	14.2015, F.S.; requiring the Office of Tourism, Trade, and
4	Economic Development to administer the Black Business Loan
5	Program; providing purposes; amending s. 288.702, F.S.;
6	revising a short title; amending s. 288.703, F.S.;
7	revising the definition of "minority person"; amending s.
8	288.706, F.S.; deleting references to the Florida Black
9	Business Investment Board, Inc., and black business
10	investment corporations from a list of certain financial
11	institutions maintained by the Department of Management
12	Services; requiring the Department of Management Services
13	to collaborate with the Florida Black Business Investment
14	Board, Inc., and the Office of Tourism, Trade, and
15	Economic Development for certain purposes; creating s.
16	288.7065, F.S.; providing a short title; amending s.
17	288.707, F.S.; revising provisions creating the Florida
18	Black Business Investment Board, Inc.; revising
19	legislative findings; creating the board; requiring the
20	board to contract with the Office of Tourism, Trade, and
21	Economic Development for certain purposes; specifying
22	application of public records and public meetings
23	requirements; providing for appointment of a board of
24	directors; specifying terms of office and experience
25	requirements of board members; providing for filling of
26	board vacancies; requiring the Governor to appoint a
27	chair; providing for meetings; requiring members to serve
28	without compensation; providing for reimbursement of
29	expenses; requiring members to file a statement of
30	financial interests; amending s. 288.708, F.S.; providing
31	for appointment and duties of the president of the board;
32	deleting a provision specifying prudent use of certain
33	funds and requiring use of funds according to applicable
34	laws, bylaws, or contracts; applying certain salary
35	limitation provisions to employees of the board; requiring
36	the Department of Management Services to establish a
37	lease-agreement program for board employees; amending s.
38	288.709, F.S.; revising the powers of the board; amending
39	s. 288.7091, F.S.; revising the duties of the board;
40	creating s. 288.7094, F.S.; providing a definition;
41	specifying eligibility of certain black business
42	investment corporations to participate in the Black
43	Business Loan Program; requiring the Office of Tourism,
44	Trade, and Economic Development to give priority
45	consideration to such corporations for participation in
46	the program; creating s. 288.7102, F.S.; establishing the
47	Black Business Loan Program in the Office of Tourism,
48	Trade, and Economic Development; requiring the office to
49	disburse funds appropriated by the Legislature, through
50	certified eligible recipients, to certain black business
51	enterprises; providing duties and responsibilities of the
52	office and the board in administering the program;
53	establishing a competitive application and annual
54	certification process for eligible recipients for funds to
55	provide loans, loan guarantees, and investments to black
56	business enterprises; requiring an allocation policy for
57	equitable distribution throughout the state; providing
58	eligibility requirements for recipients to receive funds
59	and to provide loans, loan guarantees, or investments;
60	requiring annual certification of eligibility; providing
61	for award agreements and reimbursement of funds under
62	certain circumstances; requiring the office to adopt
63	rules; requiring the board to adopt policies and
64	procedures; providing restrictions for the use of funds by
65	black business investment corporations; providing
66	legislative intent if an investment mechanism is held
67	invalid; providing for reasonable profit for a black
68	business investment corporation; creating s. 288.71025,
69	F.S.; providing a prohibited act; providing for filing of
70	a civil complaint, imposition of a fine, and the payment
71	of court costs and reasonable attorney's fees; creating s.
72	288.7103, F.S.; providing black business enterprise
73	eligibility requirements for receiving loans, loan
74	guarantees, or investments; amending s. 288.712, F.S.;
75	revising provisions relating to guarantor funds to assist
76	qualified black business enterprises obtain surety bonds
77	and other credit instruments; authorizing the board to
78	contract with regulated surety companies; revising uses of
79	the Black Contractors Bond Trust Fund; eliminating the
80	Black Business Loan Guaranty Trust Fund and the Black
81	Contractors Bond Program Administrative and Loss Reserve
82	Fund; revising board exceptions to laws and rules related
83	to a guaranty company; requiring board adoption of
84	policies and procedures relating to board guarantee of
85	loss and to required payment of premiums; authorizing
86	contracting with a private entity to administer a black
87	contractors bonding program; delineating board use of a
88	surety bond company; delineating board requirements for
89	implementing the black contractors bonding program;
90	amending s. 288.714, F.S.; requiring recipients to provide
91	quarterly and annual reports; specifying report
92	requirements; requiring the board to provide a summary of
93	such reports to the office; requiring the board to submit
94	an annual program report to the Governor and Legislature;
95	specifying report requirements; amending s. 288.9015,
96	F.S.; requiring Enterprise Florida, Inc., to collaborate
97	with the Florida Black Business Investment Board, Inc.,
98	and the Office of Tourism, Trade, and Economic Development
99	for certain purposes; requiring the Office of Program
100	Policy Analysis and Government Accountability to submit a
101	status report to the Governor and Legislature on the
102	implementation of the Florida Black Business Investment
103	Act by the Office of Tourism, Trade, and Economic
104	Development, the Florida Black Business Investment Board,
105	Inc., and program fund recipients; requiring the Office of
106	Program Policy Analysis and Government Accountability to
107	conduct a program review of the performance of the Office
108	of Tourism, Trade, and Economic Development, the Florida
109	Black Business Investment Board, Inc., and program fund
110	recipients in meeting goals of the Florida Black Business
111	Investment Act and to submit a program review report to
112	the Governor and Legislature; amending ss. 17.11, 287.055,
113	288.90151, 625.3255, 657.042, and 658.67, F.S.; conforming
114	references to changes made by the act; repealing s.
115	288.7092, F.S., relating to return on investment from
116	activities of the corporation; repealing s. 288.7095,
117	F.S., relating to duties of black business investment
118	corporations; repealing s. 288.71, F.S., relating to
119	conditions for board action; repealing s. 288.7101, F.S.,
120	relating to the state employee leasing program of the
121	Department of Management Services for employees of the
122	Florida Black Business Investment Board, Inc.; repealing
123	s. 288.711, F.S., relating to the Florida Investment
124	Incentive Trust Fund; repealing s. 288.713, F.S., relating
125	to capital participation instruments; providing a
126	legislative finding regarding use of state funds received
127	by the board through fiscal year 2005-2006; providing an
128	effective date.
129
130	Be It Enacted by the Legislature of the State of Florida:
131
132	Section 1.  Paragraphs (g), (h), (i), and (j) of subsection
133	(2) of section 14.2015, Florida Statutes, are redesignated as
134	paragraphs (h), (i), (j), and (k), respectively, and a new
135	paragraph (g) is added to that subsection to read:
136	14.2015  Office of Tourism, Trade, and Economic
137	Development; creation; powers and duties.--
138	(2)  The purpose of the Office of Tourism, Trade, and
139	Economic Development is to assist the Governor in working with
140	the Legislature, state agencies, business leaders, and economic
141	development professionals to formulate and implement coherent
142	and consistent policies and strategies designed to provide
143	economic opportunities for all Floridians. To accomplish such
144	purposes, the Office of Tourism, Trade, and Economic Development
145	shall:
146	(g)  Administer the Black Business Loan Program, the
147	purpose of which is to leverage state, local, and private funds
148	to provide loans and loan guarantees to black business
149	enterprises that cannot obtain capital through conventional
150	lending institutions but that otherwise could compete
151	successfully in the private sector.
152	Section 2.  Section 288.702, Florida Statutes, is amended
153	to read:
154	288.702  Short title.--This section and sections 288.703-
155	288.703-288.706 This act shall be known and may be cited as the
156	"Florida Small and Minority Business Assistance Act of 1985."
157	Section 3.  Paragraph (a) of subsection (3) of section
158	288.703, Florida Statutes, is amended to read:
159	288.703  Definitions.--As used in this act, the following
160	words and terms shall have the following meanings unless the
161	content shall indicate another meaning or intent:
162	(3)  "Minority person" means a lawful, permanent resident
163	of Florida who is:
164	(a)  An African American, a person having origins in any of
165	the black racial groups of the African Diaspora, regardless of
166	cultural origin.
167	Section 4.  Subsection (11) of section 288.706, Florida
168	Statutes, is amended, and subsection (12) is added to that
169	section, to read:
170	288.706  Florida Minority Business Loan Mobilization
171	Program.--
172	(11)  The Department of Management Services shall maintain
173	a listing of financial institutions willing to participate in
174	the Florida Minority Business Loan Mobilization Program, which
175	may include the Florida Black Business Investment Board, Inc.,
176	and black business investment corporations. This list of
177	financial institutions shall not be exclusive. A minority
178	business enterprise vendor who has a working relationship with a
179	financial institution is encouraged to request that the
180	financial institution apply to participate as a financial
181	institution for the program.
182	(12)  The Department of Management Services shall
183	collaborate with the Florida Black Business Investment Board,
184	Inc., and the Office of Tourism, Trade, and Economic Development
185	to assist in the development and enhancement of black business
186	enterprises.
187	Section 5.  Section 288.7065, Florida Statutes, is created
188	to read:
189	288.7065  Short title.--This section and sections 288.707-
190	288.707-288.714 may be cited as the "Florida Black Business
191	Investment Act."
192	Section 6.  Section 288.707, Florida Statutes, is amended
193	to read:
194	(Substantial rewording of section. See
195	s. 288.707, F.S., for present text.)
196	288.707  Florida Black Business Investment Board, Inc.;
197	findings; creation; membership; organization; meetings;
198	disclosure.--
199	(1)  The Legislature finds that the public interest of the
200	state will be served by the creation of a not-for-profit public-
201	private entity the primary mission of which shall be to assist
202	in the development and expansion of black business enterprises
203	by:
204	(a)  Advising the Office of Tourism, Trade, and Economic
205	Development in its oversight of the Black Business Loan Program
206	and creating long-range strategic policy for the program.
207	(b)  Evaluating the unmet need for capital by black
208	business enterprises in the state.
209	(c)  Creating partnerships between state and local
210	governments and private enterprises to aid in the development
211	and expansion of black business enterprises.
212	(d)  Providing a network of information resources for black
213	business enterprises and providing technical assistance through
214	this network.
215	(2)(a)  There is created a not-for-profit corporation to be
216	known as the "Florida Black Business Investment Board, Inc.,"
217	referred to in ss. 288.707-288.714 as the board, which shall be
218	registered, incorporated, organized, and operated in compliance
219	with chapter 617 and shall not be a unit or entity of state
220	government. The Legislature determines, however, that public
221	policy dictates that the board operate in the most open and
222	accessible manner consistent with its public purpose. Therefore,
223	the Legislature specifically declares that the board and its
224	advisory committees or similar groups created by the board,
225	including any subsidiaries, are subject to the provisions of
226	chapter 119, relating to public records, and the provisions of
227	chapter 286, relating to public meetings and records.
228	(b)  The board shall contract with the Office of Tourism,
229	Trade, and Economic Development to implement the provisions of
230	ss. 288.707-288.714.
231	(3)  The board shall be governed by a board of directors
232	chosen as follows:
233	(a)  Five members appointed by the Governor who shall serve
234	terms of 4 years each, except that in making initial
235	appointments, the Governor shall appoint three members to serve
236	for terms of 2 years each and two members to serve for terms of
237	3 years each.
238	(b)  One member appointed by the President of the Senate
239	who shall serve a term of 2 years.
240	(c)  One member appointed by the Speaker of the House of
241	Representatives who shall serve a term of 2 years.
242	(d)  The vice chair of Enterprise Florida, Inc., or his or
243	her designee.
244	(e)  The chair of the Florida Development Finance
245	Corporation created pursuant to s. 288.9604.
246	(f)  Four presidents of participating black business
247	investment corporations who shall be appointed by the Executive
248	Director of the Office of Tourism, Trade, and Economic
249	Development upon the recommendation of the Florida Consortium of
250	Black Business Investment Corporations, Inc., to serve for terms
251	of 3 years each. Each shall be eligible for reappointment to one
252	additional term of 3 years.
253	(4)  Members of the board must have experience in business,
254	including financial services, banking, or economic development.
255	At least one of the Governor's appointees must have experience
256	in venture capitalism.
257	(5)  Any person appointed to fill a vacancy on the board
258	shall be appointed in a like manner and shall serve for only the
259	remainder of the unexpired term. Any member shall be eligible
260	for reappointment.
261	(6)  The Governor shall appoint the chairperson, who shall
262	be a member of the board and shall serve at the pleasure of the
263	Governor. The board shall annually elect one of its members as
264	vice chairperson.
265	(7)  The board shall meet at least four times annually upon
266	the call of the chair or vice chair or at the request of a
267	majority of the membership. A majority of the total number of
268	current members of the board shall constitute a quorum. The
269	board may take official action by a majority vote of the members
270	present at any meeting at which a quorum is present.
271	(8)  Members of the board shall serve without compensation,
272	but members, the president of the board, and other board
273	employees may be reimbursed for all reasonable, necessary, and
274	actual expenses as determined and approved by the board pursuant
275	to s. 112.061.
276	(9)  Each member of the board who is not otherwise required
277	to disclose financial interests pursuant to s. 8, Art. II of the
278	State Constitution or s. 112.3144 shall file a statement of
279	financial interests pursuant to s. 112.3145.
280	Section 7.  Section 288.708, Florida Statutes, is amended
281	to read:
282	288.708  President; employees.--
283	(1)  The president of the board corporation, who may also
284	be designated as secretary-treasurer, shall be appointed by the
285	board and shall serve at the pleasure of the board. The board
286	shall establish and adjust the compensation of the president.
287	The president shall be the chief administrative and operational
288	officer of the board corporation and shall direct and supervise
289	administrative affairs and the general management of the board
290	corporation. The board may delegate to its president those
291	powers and responsibilities it deems appropriate, except for
292	appointment of the president. The president:
293	(a)  May contract with or employ legal and technical
294	experts and such other employees, permanent and temporary, as
295	shall be authorized by the board;
296	(b)  Shall attend meetings of the board; and
297	(c)  Shall cause copies to be made of all minutes and other
298	records and documents of the board and shall certify that such
299	copies are true copies. All persons dealing with the corporation
300	or board may rely upon such certification.
301	(2)  The corporation and its officers and board members are
302	responsible for the prudent use of all public and private funds
303	and shall ensure that the use of such funds is in accordance
304	with all applicable laws, bylaws, or contractual requirements.
305	An employee of the board corporation may not receive
306	compensation for employment that exceeds the salary paid to the
307	Governor, unless the board corporation and the employee have
308	executed a contract that prescribes specific and measurable
309	performance outcomes for the employee, the satisfaction of which
310	provides the basis for the award of incentive payments that
311	increase the employee's total compensation to a level above the
312	salary paid to the Governor. The Department of Management
313	Services shall establish a lease-agreement program under which
314	an employee of the board, as of June 30, 2002, retains his or
315	her status as a state employee until the employee voluntarily or
316	involuntarily terminates his or her status with the board.
317	Status as a state employee shall include the right to
318	participate in the Florida Retirement System.
319	Section 8.  Section 288.709, Florida Statutes, is amended
320	to read:
321	288.709  Powers of the Florida Black Business Investment
322	Board, Inc.--The board shall have all the powers granted under
323	chapter 617 and any powers necessary or convenient to carry out
324	and effectuate the purposes and provisions of ss. 288.707-
325	288.714, including, but not limited to, the power to:
326	(1)  Adopt bylaws for the regulation of its affairs and the
327	conduct of its business and adopt policies to implement the
328	provisions of law conferring duties upon it. The Such bylaws
329	shall provide that the board corporation is subject to the
330	requirements of s. 24, Art. I of the State Constitution and
331	chapter 119 and s. 286.011.
332	(2)  Adopt an official seal.
333	(3)  Sue and be sued in its own name.
334	(4)  Make and execute contracts and other instruments
335	necessary or convenient for the exercise of its power and
336	functions.
337	(5)  Acquire, hold, and dispose of personal property for
338	its corporate purposes.
339	(2)(6)  Enter into agreements or other transactions with
340	any federal, state, or local agency or private entity.
341	(7)  Encourage financial institutions to participate in
342	consortia for the purpose of investing in black business
343	enterprises.
344	(8)  Ensure that funds available to the board for purposes
345	set forth in ss. 288.707-288.714 are disbursed on a statewide
346	basis and are not concentrated in one geographical area.
347	(3)(9)  Invest any funds held in reserves or sinking funds,
348	or any funds not required for immediate disbursement, in such
349	investments as may be authorized for trust funds under s.
350	215.47; however, such investments will be made on behalf of the
351	board by the Chief Financial Officer or by another trustee
352	appointed for that purpose.
353	(4)(10)  Appear in its own behalf before boards,
354	commissions, departments, or other agencies of municipal,
355	county, state, or Federal Government.
356	(11)  Procure insurance or require bond against any loss in
357	connection with its property in such amounts and from such
358	insurers as may be necessary or desirable.
359	(5)(12)  Apply for, accept, and disburse from any state or
360	nonstate source Receive and accept from any federal, state, or
361	local agency grants, loans, or advances for, or in aid of, the
362	purposes of ss. 288.707-288.714, and to receive and accept
363	contributions from any source of either money, property, labor,
364	or other things of value, to be held, used, and applied for said
365	purposes.
366	(13)  Create, issue, and buy and sell stock, evidences of
367	indebtedness, and other capital participation instruments; to
368	hold such stock, evidences of indebtedness, and capital
369	participation instruments; and to underwrite the creation of a
370	capital market for these securities in a manner designed to
371	enhance development of capital ownership in the target group.
372	(6)(14)  Provide and pay for such advisory services and
373	technical assistance as may be necessary or desirable to carry
374	out the purposes of this act.
375	(7)(15)  Engage in special programs to enhance the
376	development of black business enterprises as authorized by this
377	act.
378	(16)  Promote black ownership of financial institutions in
379	Florida.
380	(17)  Take, hold, and improve property, including real
381	property.
382	(18)  Do any and all things necessary or convenient to
383	carry out the purposes of, and exercise the powers given and
384	granted in, ss. 288.707-288.714, and exercise any other powers,
385	rights, or responsibilities of a corporation.
386	(8)(19)  In addition to any indemnification available under
387	chapter 617, indemnify, and purchase and maintain insurance on
388	behalf of, directors, officers, and employees of the board
389	corporation and its boards against any personal liability or
390	accountability by reason of actions taken while acting within
391	the scope of their authority.
392	(9)(20)  Provide in its bylaws that, upon the dissolution
393	of the board corporation, all of its assets acquired through the
394	use of state funds, after payment of all legal debts and
395	liabilities, revert to the this state.
396	Section 9.  Section 288.7091, Florida Statutes, is amended
397	to read:
398	(Substantial rewording of section. See
399	s. 288.7091, F.S., for present text.)
400	288.7091  Duties of the Florida Black Business Investment
401	Board, Inc.--The board shall:
402	(1)  Serve as an advisory board to the Office of Tourism,
403	Trade, and Economic Development, through contract with the
404	office, to assist the office with the implementation of ss.
405	288.707-288.714.
406	(2)  Aid the development and expansion of black business
407	enterprises by leveraging state, local, and private funds to be
408	held by the board for use according to the provisions of ss.
409	288.707-288.714.
410	(3)  Serve as the clearinghouse for information and sources
411	of technical assistance that will enhance the development and
412	expansion of black business enterprises and facilitate the
413	provision of technical assistance in communities in which such
414	services are otherwise underserved.
415	(4)  Aggressively market the Black Business Loan Program
416	and related services to black business enterprises through all
417	appropriate media outlets, including media targeting the
418	African-American community.
419	(5)  Collaborate with Enterprise Florida, Inc., or its
420	affiliates to develop and expand black business enterprises.
421	(6)  Collaborate with the Department of Transportation, the
422	Department of Management Services, including the Florida
423	Minority Business Loan Mobilization Program, Workforce Florida,
424	Inc., and other state agencies and partners, the State
425	University System, including the Florida Agricultural and
426	Mechanical University's Institute of Urban Policy and Commerce,
427	school boards, and local governments to create a network of
428	information and to identify available resources to enhance the
429	development and expansion of black business enterprises.
430	(7)  Develop strategies to increase financial institution
431	investment in black business enterprises.
432	(8)  Provide a 5-year projection of the need for capital by
433	black business enterprises. The board may contract with an
434	independent entity to prepare the projection once every 5 years.
435	(9)  Annually provide for a financial audit, as defined in
436	s. 11.45, of the board's accounts and records by an independent
437	certified public accountant. The audit shall include an
438	explanation of all investments made by the board and an
439	explanation of administrative costs. Within 6 months after the
440	end of the fiscal year, the audit report shall be provided to
441	the Governor, the President of the Senate, the Speaker of the
442	House of Representatives, and the Auditor General.
443	Section 10.  Section 288.7094, Florida Statutes, is created
444	to read:
445	288.7094  Black business investment corporations.--
446	(1)  The term "black business investment corporation" means
447	a corporation that provides loans, loan guarantees, or
448	investments to black business enterprises under s. 288.7102.
449	(2)  A black business investment corporation that meets the
450	requirements of s. 288.7102(3) is eligible to participate in the
451	Black Business Loan Program and shall receive priority
452	consideration by the Office of Tourism, Trade, and Economic
453	Development for participation in the program.
454	Section 11.  Section 288.7102, Florida Statutes, is created
455	to read:
456	288.7102  Black Business Loan Program.--The Black Business
457	Loan Program is established in the Office of Tourism, Trade, and
458	Economic Development. Under the program, the office shall
459	annually certify eligible recipients and subsequently disburse
460	funds appropriated by the Legislature, through such eligible
461	recipients, to black business enterprises that cannot obtain
462	capital through conventional lending institutions but that could
463	otherwise compete successfully in the private sector.
464	(1)  The office shall establish a uniform, open, and
465	competitive application and annual certification process for
466	eligible recipients who seek funds to provide loans, loan
467	guarantees, or investments in black business enterprises
468	pursuant to the Florida Black Business Investment Act. The board
469	shall receive the applications and make recommendations for
470	certification to the office.
471	(2)  The office, in consultation with the board, shall
472	develop an allocation policy to ensure that services provided
473	under ss. 288.707-288.714 for the benefit of black business
474	enterprises are disbursed equitably throughout the state. The
475	board shall facilitate the formation of black business
476	investment corporations in communities that are not served by
477	such corporations.
478	(3)  To be eligible to receive funds and provide loans,
479	loan guarantees, or investments under this section, a recipient
480	must:
481	(a)  Be a corporation registered in the state.
482	(b)  Demonstrate that its board of directors includes
483	citizens of the state experienced in the development of black
484	business enterprises.
485	(c)  Demonstrate that the recipient has a business plan
486	that allows the recipient to operate in a manner consistent with
487	ss. 288.707-288.714 and the rules of the office.
488	(d)  Demonstrate that the recipient has the technical
489	skills to analyze and evaluate applications by black business
490	enterprises for loans, loan guarantees, or investments.
491	(e)  Demonstrate that the recipient has established viable
492	partnerships with public and private funding sources, economic
493	development agencies, and workforce development and job referral
494	networks.
495	(f)  Demonstrate that the recipient can provide a private
496	match equal to 20 percent of the amount of funds provided by the
497	office.
498	(g)  Agree to maintain the recipient's books and records
499	relating to funds received by the office according to generally
500	accepted accounting principles and in accordance with the
501	requirements of s. 215.97(7) and to make those books and records
502	available to the office for inspection upon reasonable notice.
503	(4)  The board shall annually recommend to the office
504	certification of each eligible recipient, who must meet the
505	provisions of ss. 288.707-288.714, the terms of the contract
506	between the recipient and the office, and any other applicable
507	state or federal laws. An entity may not receive funds under ss.
508	288.707-288.714 unless the entity meets annual certification
509	requirements.
510	(5)  Upon approval by the office and prior to release of
511	the funds as provided in this section, the office shall issue a
512	letter certifying the applicant as qualified for an award. The
513	office and the applicant shall enter into an agreement that sets
514	forth the conditions for award of the funds. The agreement must
515	include the total amount of funds awarded; the performance
516	conditions that must be met once the funding has been awarded,
517	including, but not limited to, compliance with all of the
518	requirements of this section for eligible recipients of funds
519	under this section; and sanctions for failure to meet
520	performance conditions, including any provisions to recover
521	awards.
522	(6)(a)  The office, in consultation with the board, shall
523	adopt rules pursuant to ss. 120.536(1) and 120.54 to implement
524	this section.
525	(b)  The board shall adopt policies and procedures
526	necessary to implement this section.
527	(7)  A black business investment corporation certified by
528	the office as an eligible recipient under this section is
529	authorized to use funds appropriated for the Black Business Loan
530	Program in any of the following forms:
531	(a)  Purchases of stock, preferred or common, voting or
532	nonvoting; however, no more than 40 percent of the funds may be
533	used for direct investments in black business enterprises;
534	(b)  Loans or loan guarantees, with or without recourse, in
535	either a subordinated or priority position; or
536	(c)  Technical support to black business enterprises, not
537	to exceed 7 percent of the funds received, and direct
538	administrative costs, not to exceed 10 percent of the funds
539	received.
540	(8)  It is the intent of the Legislature that if any one
541	type of investment mechanism authorized in subsection (7) is
542	held to be invalid, all other valid mechanisms remain available.
543	(9)  All loans, loan guarantees, and investments, and any
544	income related thereto, shall be used to carry out the public
545	purpose of ss. 288.707-288.714, which is to develop black
546	business enterprises. This subsection does not preclude a
547	reasonable profit for the participating black business
548	investment corporation or for return of equity developed to the
549	state and participating financial institutions upon any
550	distribution of the assets or excess income of the investment
551	corporation.
552	Section 12.  Section 288.71025, Florida Statutes, is
553	created to read:
554	288.71025  Prohibited acts; penalties.--
555	(1)  It is unlawful for any person to hold itself out as a
556	black business investment corporation without being certified by
557	the board as eligible to participate in the Florida Black
558	Business Loan Program.
559	(2)  In addition to any other penalties or remedies
560	provided under law, the board may bring a civil action in any
561	court of competent jurisdiction against any person for a knowing
562	or willful violation of this section. Upon an adverse
563	adjudication, the court may impose a civil penalty of up to $500
564	and payment of court costs and reasonable attorney's fees
565	incurred by the plaintiff.
566	Section 13.  Section 288.7103, Florida Statutes, is created
567	to read:
568	288.7103  Eligibility for loan, loan guarantee, or
569	investment.--A black business enterprise is not eligible to
570	receive a loan, loan guarantee, or investment from funds
571	disbursed pursuant to s. 288.7102 unless the black business
572	enterprise demonstrates that:
573	(1)  The proposed loan, loan guarantee, or investment is
574	economically sound and will assist the black business enterprise
575	in entering the conventional lending market, increasing
576	opportunities for employment, and strengthening the economy of
577	the state.
578	(2)  The black business enterprise will be able to compete
579	successfully in the private sector if the black business
580	enterprise obtains the requested financial assistance and has
581	obtained or will obtain appropriate and credible technical or
582	managerial support through an organization approved by the
583	corporation.
584	Section 14.  Section 288.712, Florida Statutes, is amended
585	to read:
586	(Substantial rewording of section. See
587	s. 288.712, F.S., for present text.)
588	288.712  Guarantor funds.--
589	(1)  The board is authorized to establish, with or without
590	public or private partners, guarantor funds to assist qualified
591	black business enterprises in obtaining surety bonds and other
592	credit instruments when required.
593	(2)  The board may contract with a regulated surety company
594	to conduct a surety bond program for black business enterprises.
595	(3)  For purposes of this section, the board may utilize
596	the Black Contractors Bond Trust Fund, consisting of moneys
597	deposited or credited to the Black Contractors Bond Trust Fund
598	pursuant to any appropriation made by law; any grants, gifts,
599	and contributions received pursuant to ss. 288.707-288.714; all
600	moneys recovered following defaults; all premiums charged and
601	collected in accordance with this section and any interest
602	earned; and any other moneys obtained by the board for this
603	purpose. The fund shall be administered by the board in trust
604	for the purposes of this section and shall at no time be part of
605	general public funds under the following procedures:
606	(a)  Any claims against the state arising from defaults
607	shall be payable from the Black Contractors Bond Trust Fund.
608	Nothing in this section grants or pledges to any obligee or
609	other person any state moneys other than the moneys in the Black
610	Contractors Bond Trust Fund.
611	(b)  The board may guarantee bonds executed by sureties for
612	black business enterprises under this section as principals on
613	contracts with the state, any political subdivision or
614	instrumentality, or any person as the obligee. The board, as
615	guarantor, may exercise all the rights and powers of a company
616	authorized by the Department of Financial Services to guarantee
617	bonds under chapter 624, but otherwise is not subject to any
618	laws related to a guaranty company under chapter 624 or to any
619	rules of the department.
620	(c)  The board shall adopt policies and procedures for the
621	application for bond guarantees and for the review and approval
622	of applications for bond guarantees submitted by sureties that
623	execute bonds eligible for guarantees under this section.
624	(d)  In accordance with the policies and procedures adopted
625	pursuant to this section, the board may guarantee up to 90
626	percent of the loss incurred and paid by sureties on bonds
627	guaranteed under this section.
628	(e)  The policies and procedures of the board shall require
629	the black business enterprise to pay a premium in advance for
630	the bond to be established by the board. All premiums paid by
631	the black business enterprise shall be paid into the Black
632	Contractors Bond Trust Fund.
633	(f)  The penal sum amounts of all outstanding bonds issued
634	by the board shall not exceed the amount of moneys in the Black
635	Contractors Bond Trust Fund.
636	(g)  Any funds to the credit of the Black Contractors Bond
637	Trust Fund in excess of the amount necessary to fund the
638	appropriation authority for the fund shall be held as a loss
639	reserve to pay claims arising from defaults on surety bonds
640	guaranteed in accordance with this section.
641	(4)  Nothing in this section shall be construed to prohibit
642	or restrict the board from entering into a joint venture or
643	other contractual agreement with a private insurer or to invest
644	in a private entity to handle all or part of a black contractors
645	bonding program for black business enterprises. The board is
646	authorized and encouraged to contract with a regulated surety
647	company to conduct a surety bond program for black business
648	enterprises. Moneys from the Black Contractors Bond Trust Fund
649	may be used for these purposes. The board may approve one
650	application per fiscal year from each surety company to support
651	one fiscal year of that company's activities under this section.
652	A surety bond company that applies for a bond guarantee under
653	this section, regardless of whether the guarantee is approved,
654	is not restricted from also applying for individual bond
655	guarantees under this section.
656	(5)  The board shall do all of the following to implement
657	the black contractors bonding program:
658	(a)  Conduct outreach, marketing, and recruitment of black
659	contractors.
660	(b)  Provide assistance to the Office of Supplier Diversity
661	within the Department of Management Services, as needed, to
662	certify new black business enterprises and to train appropriate
663	department staff.
664	(c)  Provide business development services to black
665	business enterprises in the developmental and transitional
666	stages of the program, including financing and bonding
667	assistance and management and technical assistance.
668	(d)  Develop a mentor program to bring businesses into a
669	working relationship with black contractors in a way that
670	commercially benefits both entities and serves the purpose of
671	the program.
672	(e)  No later than December 31, 2007, prepare and submit to
673	the Governor a detailed report outlining and evaluating the
674	progress made in implementing the black contractors bonding
675	program.
676	(f)  Establish a process by which black contractors may
677	apply for contract assistance, financial and bonding assistance,
678	management and technical assistance, and mentoring
679	opportunities.
680	Section 15.  Section 288.714, Florida Statutes, is amended
681	to read:
682	(Substantial rewording of section. See
683	s. 288.714, F.S., for present text.)
684	288.714  Quarterly and annual reports.--
685	(1)  Each recipient of state funds under s. 288.7102 shall
686	provide to the board a quarterly report within 15 days after the
687	end of each calendar quarter that includes a detailed summary of
688	the recipient's performance of the duties imposed by s.
689	288.7102, including, but not limited to:
690	(a)  The dollar amount of all loans or loan guarantees made
691	to black business enterprises, the percentages of the loans
692	guaranteed, and the names and identification of the types of
693	businesses served.
694	(b)  Loan performance information.
695	(c)  The amount and nature of all other financial
696	assistance provided to black business enterprises.
697	(d)  The amount and nature of technical assistance provided
698	to black business enterprises, including technical assistance
699	services provided in areas in which such services are otherwise
700	unavailable.
701	(e)  A balance sheet for the recipient, including an
702	explanation of all investments and administrative and
703	operational expenses.
704	(f)  A summary of all services provided to non-black
705	business enterprises, including the dollar value and nature of
706	such services and the names and identification of the types of
707	businesses served.
708	(g)  Any other information as required by policies adopted
709	by the board.
710	(2)  The board must compile and provide to the office a
711	summary of all quarterly reports within 30 days after the end of
712	each calendar quarter that includes a detailed summary of the
713	recipient's performance of the duties imposed by s. 288.7102.
714	(3)  By May 1 of each year, the board shall provide to the
715	Governor, the President of the Senate, and the Speaker of the
716	House of Representatives a detailed report of the performance of
717	the Black Business Loan Program, including:
718	(a)  A cumulative summary of quarterly report data required
719	by subsection (1).
720	(b)  A description of the strategies implemented by the
721	board to increase private investment in black business
722	enterprises.
723	(c)  A summary of the board's performance of its duties
724	under ss. 288.707-288.712.
725	(d)  The most recent 5-year projection of the need for
726	capital by black business enterprises.
727	(e)  Recommendations for legislative or other changes to
728	enhance the development and expansion of black business
729	enterprises in the state.
730	(f)  A projection of the program's activities during the
731	next 12 months.
732	Section 16.  Subsection (4) of section 288.9015, Florida
733	Statutes, is amended to read:
734	288.9015  Enterprise Florida, Inc.; purpose; duties.--
735	(4)  Enterprise Florida, Inc., shall incorporate the needs
736	of small and minority businesses into the economic-development,
737	international-trade and reverse-investment, and workforce-
738	development responsibilities assigned to the organization by
739	this section. Where practicable and consistent with the
740	expertise of the Black Business Investment Board, Inc.,
741	Enterprise Florida, Inc., shall collaborate contract with the
742	Florida Black Business Investment Board, Inc., and the Office of
743	Tourism, Trade, and Economic Development corporation for the
744	delivery of services in fulfillment of the responsibilities of
745	Enterprise Florida, Inc., relating to small and minority
746	businesses.
747	Section 17.  The Office of Program Policy Analysis and
748	Government Accountability shall prepare a status report on the
749	initial implementation of the Florida Black Business Investment
750	Act by the Office of Tourism, Trade, and Economic Development,
751	the Florida Black Business Investment Board, Inc., and the
752	recipients of funds disbursed pursuant to s. 288.7102, Florida
753	Statutes, and shall provide the report to the Governor, the
754	President of the Senate, and the Speaker of the House of
755	Representatives by December 1, 2008. The office shall conduct a
756	program review of the performance of the Office of Tourism,
757	Trade, and Economic Development, the Florida Black Business
758	Investment Board, Inc., and the recipients of funds disbursed
759	pursuant to s. 288.7102, Florida Statutes, in meeting the goals
760	of the Florida Black Business Investment Act and shall provide a
761	report to the Governor, the President of the Senate, and the
762	Speaker of the House of Representatives by December 1, 2009.
763	Section 18.  Subsection (2) of section 17.11, Florida
764	Statutes, is amended to read:
765	17.11  To report disbursements made.--
766	(2)  The Chief Financial Officer shall also cause to have
767	reported from the Florida Accounting Information Resource
768	Subsystem no less than quarterly the disbursements which
769	agencies made to small businesses, as defined in the Florida
770	Small and Minority Business Assistance Act of 1985; to certified
771	minority business enterprises in the aggregate; and to certified
772	minority business enterprises broken down into categories of
773	minority persons, as well as gender and nationality subgroups.
774	This information shall be made available to the agencies, the
775	Office of Supplier Diversity, the Governor, the President of the
776	Senate, and the Speaker of the House of Representatives. Each
777	agency shall be responsible for the accuracy of information
778	entered into the Florida Accounting Information Resource
779	Subsystem for use in this reporting.
780	Section 19.  Paragraph (d) of subsection (3) of section
781	287.055, Florida Statutes, is amended to read:
782	287.055  Acquisition of professional architectural,
783	engineering, landscape architectural, or surveying and mapping
784	services; definitions; procedures; contingent fees prohibited;
785	penalties.--
786	(3)  PUBLIC ANNOUNCEMENT AND QUALIFICATION PROCEDURES.--
787	(d)  Each agency shall evaluate professional services,
788	including capabilities, adequacy of personnel, past record,
789	experience, whether the firm is a certified minority business
790	enterprise as defined by the Florida Small and Minority Business
791	Assistance Act of 1985, and other factors determined by the
792	agency to be applicable to its particular requirements. When
793	securing professional services, an agency must endeavor to meet
794	the minority business enterprise procurement goals under s.
795	287.09451.
796	Section 20.  Subsection (6) of section 288.90151, Florida
797	Statutes, is amended to read:
798	288.90151  Return on investment from activities of
799	Enterprise Florida, Inc.--
800	(6)  Enterprise Florida, Inc., shall fully comply with the
801	performance measures, standards, and sanctions in its contracts
802	with the Office of Tourism, Trade, and Economic Development
803	under s. 14.2015(2)(i)(h) and (7). The Office of Tourism, Trade,
804	and Economic Development shall ensure, to the maximum extent
805	possible, that the contract performance measures are consistent
806	with performance measures that the office is required to develop
807	and track under performance-based program budgeting.
808	Section 21.  Section 625.3255, Florida Statutes, is amended
809	to read:
810	625.3255  Capital participation instrument.--An insurer may
811	invest in any capital participation instrument or evidence of
812	indebtedness issued by the Florida Black Business Investment
813	Board pursuant to the Florida Small and Minority Business
814	Assistance Act of 1985.
815	Section 22.  Paragraph (b) of subsection (4) of section
816	657.042, Florida Statutes, is amended to read:
817	657.042  Investment powers and limitations.--A credit union
818	may invest its funds subject to the following definitions,
819	restrictions, and limitations:
820	(4)  INVESTMENT SUBJECT TO LIMITATION OF ONE PERCENT OF
821	CAPITAL OF THE CREDIT UNION.--Up to 1 percent of the capital of
822	the credit union may be invested in any of the following:
823	(b)  Any capital participation instrument or evidence of
824	indebtedness issued by the Florida Black Business Investment
825	Board pursuant to the Florida Small and Minority Business
826	Assistance Act of 1985.
827	Section 23.  Paragraph (g) of subsection (4) of section
828	658.67, Florida Statutes, is amended to read:
829	658.67  Investment powers and limitations.--A bank may
830	invest its funds, and a trust company may invest its corporate
831	funds, subject to the following definitions, restrictions, and
832	limitations:
833	(4)  INVESTMENTS SUBJECT TO LIMITATION OF TEN PERCENT OR
834	LESS OF CAPITAL ACCOUNTS.--
835	(g)  Up to 10 percent of the capital accounts of a bank or
836	trust company may be invested in any capital participation
837	instrument or evidence of indebtedness issued by the Florida
838	Black Business Investment Board pursuant to the Florida Small
839	and Minority Business Assistance Act of 1985.
840	Section 24.  Sections 288.7092, 288.7095, 288.71, 288.7101,
841	288.711, and 288.713, Florida Statutes, are repealed.
842	Section 25.  The Legislature finds that the public interest
843	of the state has been served with respect to the use of any
844	state funds received by the Florida Black Business Investment
845	Board, Inc., and any black business investment corporation prior
846	to and through the 2005-2006 fiscal year.
847	Section 26.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.